Wetherspoon Head Schools Goldman in Brexit Economics - Bloomberg Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Customer Support Advertising Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Customer Support Wetherspoon Head Schools Goldman in Brexit Economics by Tim Martin says business has seen uplift since EU vote Corrects story to remove David Ross, who didn’t back Brexit JD Wetherspoon Chairman Tim Martin and Boris Johnson, former mayor of London. Photographer: Luke MacGregor/Bloomberg Goldman Sachs and Morgan Stanley don’t understand economics. Nor do the Bank of England or the U.K. Treasury. At least according to Tim Martin, the pro-Brexit founder of British pub chain JD Wetherspoon Plc. Travel with us, drive with us, eat with us. Get our weekly Pursuits newsletter. Sign Up Your guide to the most important business stories of the day, every day.

You will now receive the Business newsletter Politics The latest political news, analysis, charts, and dispatches from Washington. You will now receive the Politics newsletter Markets The most important market news of the day. So you can sleep an extra five minutes. You will now receive the Markets newsletter Technology Insights into what you'll be paying for, downloading and plugging in tomorrow and 10 years from now. You will now receive the Technology newsletter Game Plan The school, work and life hacks you need to get ahead. You will now receive the Game Plan newsletter Martin, a vocal supporter of Britain’s vote to leave the European Union, said individuals and institutions also including the Confederation of British Industry, the International Monetary Fund and outgoing Prime Minister David Cameron were practicing “irresponsible doom-mongering” in warning that a vote for Brexit would negatively impact the U.K. economy. The pub chain’s performance has improved since the vote, he said. Tim Martin Photographer: Ben Stansall/AFP via Getty Images “The above individuals and organizations are either dishonest, or they have a poor understanding of economics, since democracy and prosperity are closely linked and the EU is clearly undemocratic,” Martin said in a statement Wednesday.

“In spite of the dire warnings above, Wetherspoon trade strengthened slightly in recent weeks.” Martin’s criticism contrasts with a report released by consultancy Begbies Traynor that said U.K. pubs are in a “dire state” as Brexit will exacerbate the financial pressure of the country’s higher minimum wage , unseasonable weather and England’s premature exit from the Euro 2016 soccer tournament. The number of bars going out of business rose 53 percent to 831 in the second quarter. Rooney Anand, chief executive officer of pub company Greene King Plc, has said Brexit is likely to affect consumer confidence. Spokesmen for Goldman Sachs and Morgan Stanley declined to comment. Beating Drum Martin was one of the most vocal U.K. business leaders to back the Brexit campaign, joining former HSBC Holdings Plc CEO Michael Geoghegan. Martin, who founded the pub chain known for its low prices in 1979, went so far as to distribute 200,000 beer mats in pubs arguing for a Brexit, which read “Why should we trust the IMF?” The recent business boost prompted Wetherspoon to forecast “modestly improved” results for the full year.

It comes as a gauge of business sentiment in the U.K. has fallen to the lowest in more than four years, the Bank of England mulls cutting interest rates, and European staff in the hospitality industry are uncertain about their future employment. Immigration has so far been an economic benefit, but the country cannot accommodate more workers, Martin said in an earlier interview. The company had previously said it anticipated a trading performance similar to or slightly above 2015, when it reported revenue growth of 7.4 percent to 1.52 billion pounds ($2.02 billion). The shares rose 2.6 percent to 761.5 pence at 1:02 p.m. in London, boosting the value of Martin’s 29 percent stake to about 255 million pounds. (Corrects story published July 13 to remove erroneous reference to David Ross backing Brexit in sixth paragraph.) Before it's here, it's on the Bloomberg Terminal.

In This British Pub Chain, the Pints Come With a Side of Brexit - Bloomberg Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Customer Support Advertising Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Customer Support In This British Pub Chain, the Pints Come With a Side of Brexit by @bizboyle More stories by Matthew Boyle The Brexit Debate: What Happens if the U.K. Leaves the EU Customers ordering a drink at any JD Wetherspoon Plc pub in the U.K. will now get a chaser of propaganda as well, as the chain has distributed 200,000 beer mats arguing for a Brexit in the run-up to the June 23 referendum. The mats take aim at International Monetary Fund Managing Director Christine Lagarde, who supports Britain remaining in the European Union, by comparing the governance of the IMF with that of FIFA, world soccer’s embattled governing body.

They’re signed by Wetherspoon’s pro-Brexit founder and chairman Tim Martin, and will be available in more than 920 pubs across the U.K. The design of a Wetherspoon's Brexit beer mat. Source: JD Wetherspoon Plc A pint of ale sits by Brexit beer mats at a Wetherspoon pub. Photographer: Simon Dawson/Bloomberg “Why should we trust the IMF?” the mats read, adding, in reference to Lagarde, “Did anyone elect you?” An IMF representative didn’t immediately respond to a request for comment. Martin is one of the most vocal business leaders backing the U.K. to leave the European Union, calling the EU “fundamentally undemocratic” and accusing U.K. Prime Minister David Cameron and Chancellor George Osborne of using “ludicrous scare tactics” to convince Britons to vote to remain. Among those lining up alongside Martin are former HSBC Holdings Plc chief Michael Geoghegan, while executives at Guinness maker Diageo Plc, Vodafone Group Plc and Ryanair Holdings Plc have called for Britain to stay.

‘Smart Stunt’ “This is a very smart awareness-raising publicity stunt,” Mark Borkowski, a London public-relations strategist, said by e-mail. “However, a decision made over a pint rarely materializes in the cold light of the day.” Pub chain JD Wetherspoon issues Brexit beer mats | Business | The Guardian JD Wetherspoon Pub chain JD Wetherspoon issues Brexit beer mats Founder Tim Martin prints 200,000 beer mats calling for UK to leave EU, taking particular aim at Christine Lagarde and the IMF The design of the beer mat that will be made available in 920 JD Wetherspoon pubs across the country. Photograph: Wetherspoons Press Association Tuesday 31 May 2016 03.33 EDT First published on Tuesday 31 May 2016 03.16 EDT Close This article is 8 months old The question of whether Britain should vote to leave the EU next month is bound to be a hot topic in pubs and bars up and down the country for the next few weeks.

On Tuesday, it emerged that pub chain JD Wetherspoon has printed 200,000 beer mats bearing what the company’s boss says is a hard-hitting message arguing for the UK to leave the EU. Brexit explained: how do I vote by post or by proxy? The beer mats will be available in the company’s 920 pubs across the UK in the run-up to the 23 June referendum. The message draws attention to governance issues with senior staff at the International Monetary Fund (IMF) and asks why UK voters should trust the views of its managing director, Christine Lagarde, who has voiced her support for the remain group. The beer mat has a message on both sides, which is signed by Wetherspoon founder and chairman Tim Martin, a strong believer in leaving the EU. Martin said: “The governance issues within the IMF, are, in my opinion, very serious for UK citizens. Design your own EU referendum beer mat Read more “The government has paraded a number of financial institutions in front of the public, who have, in my view, grossly distorted our financial prospects in the event of a Brexit.

“Corporate governance at the IMF is clearly out of control and Christine Lagarde would have been obliged to resign at any normal plc or institution until the matters in question were resolved. “The UK public have been asked to rely on her comments by both George Osborne and David Cameron in the forthcoming referendum and she must now answer the questions on the beer mats and others that the public may have.” Pub chain JD Wetherspoon pushes pro-Brexit message Pub chain JD Wetherspoon pushes pro-Brexit message 1st June, 2016 by Melita Kiely The founder of British pub chain JD Wetherspoon has printed 200,000 beer mats urging the UK to leave the EU in this month’s referendum. Brexit beer mats will be distributed at all 920 JD Wetherspoon pubs in the UK The mats will be distributed in the group’s 920 pubs across the UK and take particular aim at Christine Lagarde and the International Monetary Fund (IMF).

Messages printed on both sides of the beer mats include issues with senior staff at the IMF, and raises questions as to why UK voters should trust the views of Lagarde, managing director, who has expressed her support of remaining in the EU. The UK public will vote on 23 June to remain or leave the European Union. The Wine and Spirit Trade Association (WSTA) and Scotch Whisky Association (SWA) have both voiced concerns over a potential UK exit from the EU. “The governance issues within the IMF, are, in my opinion, very serious for UK citizens,” said JD Wetherspoon founder Tim Martin. “The government has paraded a number of financial institutions in front of the public, who have, in my view, grossly distorted our financial prospects in the event of a Brexit. “Corporate governance at the IMF is clearly out of control and Christine Lagarde would have been obliged to resign at any normal plc or institution until the matters in question were resolved.

“The UK public have been asked to rely on her comments by both George Osborne and David Cameron in the forthcoming referendum and she must now answer the questions on the beer mats and others that the public may have.” Related Posts Alliance News Detail - London Stock Exchange Alliance News Detail 'Remain' Case Undermines British Public, Says Wetherspoons Chairman [ 17 May 2016 12:31 ] LONDON (Alliance News) - Arguments for why the UK should stay in the European Union undermine the intelligence of the British public, according to JD Wetherspoon PLC Chairman Tim Martin. The founder of the Wetherspoon pub chain has publicly made known his strong opinion that the UK should leave the EU, and in his latest statement on the subject has criticised Prime Minister David Cameron and Chancellor of the Exchequer George Osborne for 'Remain' arguments which he says undermine the intelligence of the British public.

While Cameron, Osborne and the other leaders in the Remain camp have constantly warned on the negative financial implications leaving the EU would have on the UK's economy, Martin argued that, judging by past events in the UK's history, there would be little economic difference either way, criticising the Remain campaigners for scaremongering the British public. "We now read gory headlines from politicians forecasting the end of civilisation as we know it, as well as a plague of locusts, if Brexit occurs," Martin said, which shows "contempt for the intelligence of the public", he added. The chairman also brushed off the UK treasury's statement that the average family will be about GBP4,000 a year worse off by 2030 if we leave the EU as "complete and utter fiction". Instead, Martin argued that the EU is "fundamentally undemocratic", given that the member countries' laws cannot override the judgements of the European Court. He also criticised US President Barack Obama for fighting for the Remain case, and hit back at the president's statement that the UK would go to the "back of the queue" in negotiating a trade agreement with the US in the event of Brexit.

"No serious American, including Obama, would consider reducing democracy by handing over their powers to an undemocratic international organisation, which is what Obama is advocating for the UK," Martin said, adding that failing to secure a trade agreement with the US, and also the EU, would not actually have much of an effect on trading. "At Wetherspoon, we know from our own experience that trade is worldwide and agreements with the EU are of limited value," he said. According to the chairman, Wetherspoon buys 95% of its wine from South America, Africa, Australia and New Zealand, despite the EU having some of the biggest wine producers in the world, as it has been unable to reach deals with countries such as France, Italy and Spain which match the quality and price. "The public is far more intelligent than any narrow group of politicians and businessmen," Martin said. "By regaining democracy and power over our own future, we can make our own laws in this country and elect and dismiss our political representatives ? while retaining good relations with our good friends in Europe and the world. Continuing to give away power to the unelected elite in Brussels is a dangerous and unpredictable path," he concluded.

By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews Copyright 2016 Alliance News Limited. All Rights Reserved. 'Remain' Case Undermines British Public, Says Wetherspoons Chairman - Alliance News Prices The Big Interview: Tim Martin, Wetherspoon pubs chief - The Scotsman Heroes The Big Interview: Tim Martin, Wetherspoon pubs chief Wetherspoons founder and chairman Tim Martin has defended the zero-hour contracts, where employers are not obliged to offer minimum working hours, saying they suit fluctuating customer demands MARTIN FLANAGAN Have your say One in six British pubs has closed since the early years of the new millennium. Well over 10,000 outlets, through a welter of pressures ranging from cheap beer sold by supermarkets to the smoking ban, alcohol duties, rising energy costs and higher wages – the latter just ratcheted up through the introduction this month of the national living wage. But Tim Martin, the outspoken chairman and founder of the 950-outlet JD Wetherspoon pub chain, believes another more unquantifiable pressure is gaining traction.

Namely, a rising number of a cash-poor and screen‑living younger generation losing the pub-going habit. Martin says: “There is a link. It seems that people who use social media a lot feel less need to socialise. Many tend to be students and you have a grand impoverishment of our students, what with tuition fees, etc. That’s bound to affect pub sales and other types of consumption. I did not leave university with £50,000 of debt.” On a lighter note, he tells the story of returning to his home in England’s West Country one time to find his son and friends playing on consoles and drinking supermarket beer. “Why don’t you sod off down the pub?” dad said. It segues to a hobbyhorse of Martin, what he has repeatedly claimed is an “unlevel playing field” with supermarkets that can use their VAT-free food sales to subsidise their take-home beer offering and undercut pub prices. By contrast, JD Wetherspoon and its pub peers pay 20 per cent VAT on their food sales, no mean amount when food now accounts for nearly 40 per cent of group revenues.

Martin, who still owns 28 per cent of the business he founded as a 24-year-old in 1979 with one pub in Muswell Hill, north London, says: “It’s hard to quantify financially, but you cannot isolate such issues. We have this tax inequality between us and the supermarkets at the same time as social media is becoming ever more established. All the factors add up to put pressure on pubs.” Last month Wetherspoon unveiled a 4 per cent fall in half-year profits to £36 million, which it largely attributed to extra staff costs for its 37,000 headcount. Never afraid to tilt at totems, the Wetherspoon boss is scathing about what he believes was Chancellor George Osborne’s motivation for the new national living wage for over-25-year- olds, which will go up to £9 by the end of this parliament. “(Osborne) was simply shooting from the hip to make himself Prime Minister,” Martin says. “It was decided over a couple of pints of beer at Chequers one weekend. How can we make George Prime Minister in five years?

It was a way of him getting kudos (with the public).” Obviously alive to the potential PR damage of possibly being seen on the wrong side of the populist argument for the living wage, he adds: “I’m worried about the extra cost. But we pay 40 per cent of our profits out in bonuses to our staff, equal to about 15 per cent of pay for managers and 5 per cent for other employees. I would suggest that shows good intent.” Despite the pub sector pressures, Wetherspoon’s founder knows the chain – no music, no pool tables, low prices, serious buying power with suppliers – is in good health. Like-for-like sales increases on last year are running at about 3.7 per cent, which many in the sector would envy, with the average outlet taking £38,400 per week. Given the business’s strength and the City’s legendary short-termist outlook, in the past Martin has been asked whether he would take the business private again. But he laughs: “I don’t want to own it entirely.

I would have to pass it on to my son or one of my daughters to run and that would be a hospital pass.” Some have argued that the leisure trade, which relies heavily on younger, lower-paid staff, protests too much about the living wage. They say consumers will have more money to spend on enjoyment. “There may be an element of that, people having more money in the pub, but I don’t think it will cut much ice in Port Talbot, Cambuslang or Scunthorpe (centres of the crisis-hit, jobs-haemorrhaging steel industry),” Martin responds. Which takes us on to controversial zero-hour contracts, where employers are not obliged to offer staff minimum working hours, and staff are not obliged to accept what is offered. The Wetherspoon chairman defends them, claiming they suit the fluctuating customer demands of the trade. “We have admitted using zero-hour contracts, but many other pub companies have not. They cannot possibly operate without something like an hourly paid system. It suits the industry, and a lot of people who work in it.

And if on the wider level you want a flexible labour market, which has its advantages in terms of low unemployment, there has to be an element of varying hours, say between different consumer demand in December and January.” Martin is a big character in every sense. Six foot, six inches tall, invariably casually dressed, and with something of a 1970s-style mullet haircut, it is easy to espy him when we meet at a Wetherspoon bar virtually over London’s Baker Street station. He is bloke‑ish, Mr Everyman in style, very approachable. But he is more nuanced than that. Martin qualified as a barrister before being called to a different type of Bar, and quotes Shakespeare. He has described the pub industry as “Sisyphean”, after the mythological Greek king condemned eternally to roll a large stone to the top of a hill, only for it to roll straight back down again. Martin also doesn’t do marketing jargon. How do you get a pub business right? Ask the staff, particularly the pub managers at the rockface, and use their best ideas, he says.

A recent example is Wetherspoon ditching its Sunday roast meals nationwide because kitchen staff said it was interfering with the quality of breakfast offerings on the company’s busiest day of the week for the latter. “We don’t dream this stuff up, it is a case of small adjustments. I visit ten of our pubs a week, sometimes double that, and shoot the breeze with the manager,” Martin says. Wetherspoon has expanded strongly in Scotland since the mid-1990s, with about 70 outlets now, including The Playfair in Edinburgh, Elgin’s Muckle Cross, and The Robert the Bruce in Dumfries. “We have had a good reception in Scotland, more than a fair crack of the whip from the public, the courts and the local authorities,” Martin says. In the bigger picture, he is sanguine about the sector’s prospects, but for the first time since its 1992 flotation on the stock market, Wetherspoon has revealed it might close more pubs than it opens this year. He also appears to be rowing back on forecasts some years back that the company could eventually expand to 1,500 UK pubs. “It varies according to your mood and the tax regime.

I would say that I’m now aiming for between 1,000 and 1,200,” he notes. It wouldn’t be Martin if we didn’t also touch on what he believes are elitist, out-of-touch politicians again. He is one of the highest-profile British businessmen backing a Brexit from the EU – feeling vindicated that he made the right call in campaigning against us joining the euro in 1999. “Too many of these politicians have been loved since they were aged four, top of the class, they have been told they are brainier than anybody else, and then they find they only have the same vote as the riff-raff. They like Brussels and are pre-disposed to the EU.” JD Wetherspoon JD Wetherspoon Data delayed at least 15 minutes, as of January 19 2017 17:01 UTC Markets data summary Data delayed at least 15 minutes, as of January 19 2017 17:01 UTC Add to myFT Digest Add this topic to your myFT Digest for news straight to your inbox Add to myFT Digest You select the topic, we deliver the news.

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Wednesday, 18 January, 2017 In 12 months, wheat prices have risen 13% in euros but 27% in pounds Wednesday, 18 January, 2017 Companies analysis from our sister publication Friday, 4 November, 2016 Pub chain chief decries ‘burden’ being put on French wine and German beer producers Wednesday, 2 November, 2016 Tim Martin claims the UK does not need a trade deal with the EU Friday, 9 September, 2016 BBA urges JPMorgan chief to take a more positive tone over Brexit Wednesday, 13 July, 2016 Tim Martin lambasts ‘absurdity and ludicrous nature’ of some economic predictions Wednesday, 13 July, 2016 Chief executives who supported Leave suffer in stock market rout Wednesday, 29 June, 2016 Fund managers fear issue of drug resistance Sunday, 10 April, 2016 Companies analysis from our sister publication Friday, 18 March, 2016 Pub chain chairman confident of managing costs but takes a swipe at taxation discrepancies Friday, 11 March, 2

016 Pub chain cheered by sales boost but says above-inflation pay rise will dent earnings Wednesday, 20 January, 2016 Departing City of London Police commissioner says greater regulation not the answer Monday, 28 December, 2015 Demand for specialists up fourfold over the past year, according to recruitment survey Tuesday, 8 December, 2015 Pub chain says more than 650,000 customers affected Friday, 4 December, 2015 Pub-chain owner says higher costs sparked by new labour legislation could hit margins Wednesday, 4 November, 2015 Previous You are on page 1 Next Video Welcome to the new FT.com.

The same global insight. Faster than ever before on all your devices. Welcome to the new FT.com. The same global insight. Faster than ever before on all your devices. More from the FT Group Markets data delayed by at least 15 minutes. © THE FINANCIAL TIMES LTD . FT and ‘Financial Times’ are trademarks of The Financial Times Ltd. The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice . Jd Wetherspoon Strategic Analysis Marketing Essay Jd Wetherspoon Strategic Analysis Marketing Essay Published: Last Edited: 23rd March, 2015 This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. The British pub chain JD Wetherspoon, started as a local pub in London by its Chairman Tim Martin in 1979. It has since grown and the company now owns over 700 pubs all over the United Kingdom. The chain which is based in Watford operates pubs that serve cask ale at low prices with long opening hours.

The company also own and run a chain of hotels (known as "Wetherspoon Lodges" or "WetherLodges", but now as Wetherspoon Hotels, following a rebranding exercise in September of 2009) in the UK. The purpose of this paper is to first point out the sustainability of JD Wetherspoon's strategic position. And draw an analysis on key external drivers of change affecting the company through Porter's Five Forces model and PESTEEL model. Through all of the analysis, explore the key activities in JD Wetherspoon to identify its core competences and how the company is "value-added". In addition, some relevant examples will be placed onto the models to further illiterate the point. Model 1: From the Porter's generic position model (1985) analysis, a clear picture of the strategy JD Weatherspoon emphasis is on differentiation and diversification. It insisted on retaining pubs that do not provide any form of entertainment except having a comfortable place to enjoy a conversation. For instance, Wetherspoon pioneered having smoke free areas in pubs to cater to the non-smoking customers.

It started converting some of its pubs to become completely smoke free ones even before the legislation was passed down. And when Wetherspoon sees a strong growth in food sales and a decline in its bar sales, it dedicated on the development of food by having an extended menu, with table service that offers customers a unique, comfortable and welcoming environment. But with their newer chain of bars, the "Lloyds No. 1" builds on the foundation of its success and diversified into providing patrons with contemporary music videos and in some cases a small dance floor. Moreover, the organisation's culture of JD Wetherspoon is one of being innovative and creative. Wetherspoon is the only large pub firm which opens all its pubs early in the morning, serving breakfast as well as other meals and drinks. Relationships Differentiation focus Differentiated product/service JD WetherspoonIn another hand, Wetherspoons also own and run a chain of hotels through its position as a disciplined innovator. Its organisational culture is one of keeping innovative and creative that they aim to invest £250 million in 250 new pubs across the country over five years.

They would continuously focus on the area of innovative products and service which differentiate them from other competitors (wiki.jdwetherspoon.operations.com). Model 2: Like Porter's generic strategy, Bowman's strategy clock is also a suitable method to examine organization's competitive position by utilizing different kinds of options. JD Wetherspoon is plotted between line 4 and line 5. This means it is somewhere between a differentiation strategy and a focused differentiation strategy. It is quite imperative for a pub to be different from other competitors in this company with such a high level of competition. The key differentiation adopted by Wetherspoons to differ from its competitors is its long operating hours and the "feeling of home" environment of its outlets. The company is the first pub to introduce no-smoking areas, the first to ban smoking as well as serving food all day. The company feature wine selections from some of the top wine-maker from around the world like the South African Bruce Jack. Picked from all of the wines available in the global market, they are chosen to compliment the food selection available at Wetherspoons outlets no matter the cost.

In addition to the measures undertaken to ensure quality, the corporation's culture focus on how to prepare an excellent environment with their extremely strict standards and great care, and improve the quality of living of people who make them grow. And each Wetherspoons employee is trained high skilled to make sure the customers can obtain knowledgeable service. Model 3: The PESTEEL model is utilized to review an organisations strategic positioning, company direction or marketing proposition from the outside perspective and for examining the external environment in which it operates now and further. The current global economic crisis is really a big issue affecting JD Wetherspoon. It has close dozen of outlets that are underperforming along with its staff as it feels the force of the recent recession. With lesser money in their pockets, customers will reconsider before they overspend in Wetherspoons due to the hike in other products. The ever increasing inflation coupled with the recent increase in VAT by the UK government make sales decline even more evident. The socio-cultural aspects of life in the UK is slightly different, customers are not just going to pubs for beer, more and more are choosing to relax and talk in its premises. This has help the pubs attract more customers who are looking for a sense of home outside of home.

And lately it seems, it has been fashionable for the younger crowd to hang out in its pub. Hence, Wetherspoons have launched several new pubs and hotels. It's not just drink but about cheap breakfasts and hospitality. (The Sun, 2005). Technological advances have allowed Wetherspoon to develop various innovative beer brewing equipments with a higher performance compared to before. Technological changes can also create new processes which help to reduce costs, improve quality and lead to innovations which in turn benefit its consumers as well as the organizations as a whole. Taking its recent approach to utilise e-learning, JD Wetherspoon has adopted a new innovative way of training staff that is unheard of in the industry. And their bars play corresponding music videos that are displayed on wall televisions. These technology advances had created a leisure and comfort place for loyal customers to relax after work which improves Wetherspoon customer's service. When talking about environmental forces such as global warming and pollution, people might think about the failed attempt by JD Wetherspoon. Its use of eco-friendly technology at its first green pub, the "Kettleby Cross", missed its energy saving targets by a country mile.

However, after six months it managed to achieve energy savings of 8%, significantly lower than originally planned (caterer search.com). This helped the company gain more reputation and build a healthier brand image. It has also adopted a recycling program for its waste materials which focus on energy conservation. (Wetherspoon.com). By creating a single large drop of point for its recyclable material, the vans which do the deliveries pick them up at the end of each delivery run. Also Wetherspoons begin to implement new operational alternatives to reduce their water usage in all of their outlets. Model 4: Since Porter's (1980) outlined the Five Forces model which impacts a company's competitiveness, this has become another significant method to analyze the industry structure of an organization. Potential entrants Seeing the success of JD Wetherspoon and other.pub operating chains, many new entrants will want to have a piece of the pie. But it is not easy to step into an already established market as cost of start-up is just one of many.

And with the diversification of business the company has undertaken by spreading into the budget hotel industry as well as running pubs that previously not of JD Wetherspoons style and ambience, it is not financially or logically feasible for a new entrant to attack all fronts at the same go. JD Wetherspoon have managed to through the years not just refine their core business but also manage to spread out to different areas with some kind of success, take the dining side of its business, it has over time climb up in terms of contributing to the profit margin of the company. The company also priced out most new operators. By adopting a "low profit margin" way of running its business most new pub operators could not financially compete as they could not the generate the same amount of turnover JD Wetherspoon manage to that makes this kind of approach successful. With exception to a few specialty pubs, JD Wetherspoon manage to have strong foothold in the market. Meaning it has a high immunity towards this "force" Threat of substitutes The treat of a substitute emerging is fairly low as it serves basic food and beverages.

From its beer retailing perspective, the market is already saturated with many other big players as well as smaller bars and pubs and also beer will not be easily replaced as there are no natural substitutes for beer. The only threat here is that other outlets manage to offer what its pubs offer and at a lower price. Suppliers' bargaining power As with all hospitality lines, if you lose the capabilities to provide the service or product you are meant to be dealing with, your business is done. If the suppliers were to rally together and hold the company for ransom over ingredients or product pricing, the whole of JD Wetherspoon will come to a stop. The power of supplier bargaining represents a high threat to the operations of JD Wetherspoon. Its core business is dealing with patrons who either come in for food or alcohol. With that in mind, both "wants" are either freshly made or brewed in a brewery. If the supplier in charge of a particular ingredient is to hold up the goods, the business will be in a standstill as food ingredients once the stockpile runs out unless there is a alternate supplier which has supplies what is needed.

And when it comes to that the other supplier might charge an exorbitant fee as there might not be anyone else with stocking that particular ingredient. It's the same for the beer ingredients, if the supply-chain for the ingredients for brewing the special ale that JD Wetherspoon serves is broken the business will be badly affected. As a huge client, issues like the ones highlighted above are rare. Priority treatment might even be received as the amount that changes hands day to day is significant. The only thing that might happen is industrial sabotage where bigger pub chains who share a supplier try to coercion them into not supplying to you or increase prices. Buyers' bargaining power One of the key selling points of JD Wetherspoons premises is that although it has grown in size, it retains its customer orientated approach. Even with the ever growing number of specialty pubs popping up and regular pubs and hotels upgrading the food and/or drinks they serve, the customer loyalty built up over the years is still there. Since the company listens to its customers and conducts regular quality checks on its own premises, it has provided customers with no reason to move on to other specialty bars like Bath bars or the Aldgate bar. The company sells by differentiation so it caters to its own niche crowds.

Rivalry between competitors: Competition may take the form of price competition, advertising and promotion, innovation, or service during and after sale.With any business entity, unless it holds a monopoly on the market, it will have to deal with the threat of rivals. In the case of JD Wetherspoons, the major threat comes from another pub chain, Punch Tavern PLC. It is UKs biggest pub chain operator with a portfolio of over 6000 outlets. And with the company's diversification, came along a multitude of other threats associated with them. The company seems to get through this problem by cross adverting and through running promotions or reducing cost of product to bring the crowds back in. By doing so you might win the hearts of your customers and they will come back to you whenever there is an urge to drink. With the core business being consumption of alcohol and the amount of pubs around each town, it has to rely on its strategy of lowering cost to stay competitive in the market. Model 5: This model presents an overview of the core competencies of JD Wetherspoon.

Brand reputation Advanced skills of making innovative products Well trianed employees Large amount of chain pubs in UK Large sales volume General customer service Skills of making beer Resources which every production requires, is a valuable asset to any firm. Be it supplies in its kitchen like raw ingredients behind the bar are each carefully picked. With the large network of outlets throughout the country, they have to have a very well maintain logistic system to ensure all outlets needs are taken care of. This is something the company excelled in and even managed to incorporate its green plan into driver. Its key competency that drives its business on is its human resource management and training. The company invest in new training equipment to improve the skills of the staff. The chairman of the company also conducts checks on its outlets. It will provide first-hand knowledge on how the outlet is running and picks up faults for the store manager to iron out before a customer complaint about the matter. This strengthens the brand reputation as well as staff relationship in the company. Model 6: This model comprehensively analyzes the value added element of JD Wetherspoon and links the primary and support activities together to give a broader view of its strategies.

Value Chain Size of the company scope of the operation HRM Support activitiesUnique ability to motivate people High-quality training and development used to improve training; create new ways to reduce cost; develop new innovative products Procurement Marginclose relationship with suppliers to ensure long-term contract; carefully selecting by professional groups Inbound Logistics Other related product Primary activities Primary operation is to provide certain value added of the company, such as making beer and food with an extreme strict standard using their own equipment specifically. Wetherspoon has created a very dynamic value chain. The close relationship with the suppliers which ensures the long-term supply of high quality spelt is the initial part in the whole process.Human Resource Management is of particular importance here, because the employee who provide the great services can help the company gain value added. And Wetherspoon has recognised that their employees in one of the most important factors for their success. It provides great working environment to the staff, and treat all employee equally to ensure they may feel themselves valued by company and would continue providing great service. Even outbound logistics, such as making contracts for supplying of various commodities, depend on support activities such as HR because it all depends on the negotiation power of the person in charge to make healthy deals.

(International Survey of Zero Waste Initiatives, 2006) Marketing, which includes advertising and acquisition of funds by creating awareness about the project worldwide, is directly related with support activities such as usage of internet for making awareness, asking for funds and making people aware about recent additions to the company itself. According to the analysis, we can see that JD Wetherspoon primary activities and supportive activities of Wetherspoons have provide an outstanding competitive advantage In concluded, it is critical for JD Wetherspoon to initiate in social involvement and keep its current strategies directed towards positive views on the organisation as a whole. Carrying out future endeavours should consist of internalization and the constant development of the company as a whole; concerning with performance, relations, innovation, and the constant look at their external environment.Â The most important threat forJD Wetherspoon is new brand pubs chain. As Wetherspoon is in a highly competitive pub, they have to be aware of the threats in their specific situation, and continue searching new approaches to take full advantage of their opportunities and minimize their threats. References: [Company Perspectives], [online].

Available from: [Accessed 15Jan, 2o11] [JD Wetherspoon , not dated] [wine].

[online] Available at: < [Accessed on 15 January 2011] [Guardian,14 October 2010] [wetherspoon], [online] Available at: < [Accessed on 15 January 2011] [Rob Hastings Monday, 13 September 2010] [independent] ,[online]Available at: < [Accessed on 15 January 2011] [Nikhil Kumar Friday, 15 October 2010] [independent], [online]Available at: < [Accessed on 15 January 2011] [Anonymous Tuesday, November 1 2005 ] [E.learning Age], [online] Available at: [Accessed on 15 January 2011] NetmbaÂ NetmbaÂ [Online]Â //Â TheÂ ValueÂ Chain.Â -Â 2008.Â -Â JanuraryÂ 15,Â 2011.Â - <Â

Question: Who is the founder and Chairman of Wetherspoon plc, the British pub chain?
Answer: Tim Martin